Oil Monitor as of 26 December 2023

Date published: December 29, 2023

WORLD OIL PRICES (December 18-22, 2023, trading days)

The week-on-week price of Dubai crude has increased by around $3.00/bbl. Similarly, MOPS gasoline, diesel and kerosene have also increased by about $3.30, $3.40, and $3.60 per barrel, respectively.

Reasons for the Price Adjustment1

  • Several factors influencing oil prices this week have affected the crude oil market. Aside from the supply and demand issues, one that triggered the movement is the rising tension in the Red Sea, where Yemen’s Houthis have targeted commercial vessel, disrupting global trade thru the Suez Canal.
    • Crude prices rise on ongoing Red Sea tensions overshadowing the impact from larger than expected US inventory build.
  • Further bullish support comes as the EU tightens sanctions on Russian crude volumes. As part of its latest sanctions package on Russia, the European Council Dec. 18 adopted new measures requiring shippers to itemize their insurance, freight and customs costs due to the "manipulation" of the ancillary costs as part of the price cap attestation process. While this could mean more buying of Russian crude from Indian and Chinese refineries, Brent could see a tightening from European demand.
  • Chinese gasoline exports could rise in January2024, to more than 1 million mt from an estimated 800,000 mt in December amid expectations that China will release new export quotas in January, firm gasoline export margins and healthy stocks despite the upcoming Lunar New Year festivities.
  • Market sentiment in the Asian gasoil/diesel market remained stable as traders await China’s export quota allocations for 2024 for supply cues while situation in the Red Sea was watched.

FOREX: The week-on-week average of Philippine peso depreciated versus the US dollar by P0.03 to P55.72 from P55.69 in previous week.

DOMESTIC OIL PRICES

Effective 26 December 2023, the oil companies implemented an increase in the price of gasoline, diesel and kerosene by P 1.60/L, P 1.70/L and P1.54-1.55/L, respectively.

These price adjustments resulted in a year-to-date net increase of P12.60/liter for gasoline, P5.65/liter for diesel and P1.24/liter for kerosene.

For the updated prevailing retail pump prices, please refer to this link:

Other recommended reference sites:

 

For more information, call the

Department of Energy
Pricing: 8840-2187
LPG: 8840-2130
Fuels: 8840-5669
Website: https://www.doe.gov.ph

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1 Asia-Pacific Weekly Recap 2 December 2023 by S&P Global Commodity Insights.

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